Post
Topic
Board Economics
Re: Dealing with tax and crypto ban
by
wxa7115
on 11/02/2022, 17:47:35 UTC
Accepting the crypto taxes does not necessarily mean that government or central banks are actually accepting them as legit assets. Remember that tax acceptance could be Trojan horse situation where Government is saying that they are in favour of it but deep inside they could be plotting big arena battle. The recent case with India, where budget stated that they will levy 30% taxes on the crypto earnings. Just imagine the situation of those who are in India right now. I mean they may be happy but they may not be really happy!

It’s not full ban at all, but it’s indirect ban because who would pay 30% of their income straight in taxes? That’s sorrowful and they can’t just deal with it.
Even if also I think of the example you are giving as an indirect ban, most people are not going to be that dumb and pay that tax, I remember that after the Great Depression on the US the government made possession of gold illegal and ordered all of their citizens to give their gold to the government, and what happened next? The government devalued the dollar against gold and earned a lot of money because of it since they were the ones now holding way more gold than before.

However it is believed that roughly half of the population did not gave their gold away, and taking into account that thanks to the technology people are more informed than at any moment in the past, I doubt people will pay a tax that high and will simply ignore it.